Under Armour Q3 Earnings Top Estimates

Under Armour Inc UA reported third-quarter FY23 sales growth of 3% year-on-year to $1.58 billion, beating the consensus of $1.55 billion.
Wholesale revenue increased 7% Y/Y to $820 million, and direct-to-consumer revenue fell 1% to $715 million.
Apparel revenue fell 2% Y/Y, Footwear climbed 25%, while Accessories revenue decreased 2%.
Gross profit fell 10% Y/Y to $698.4 million, and the gross margin contracted 650 basis points Y/Y to 44.2%.
Operating margin expanded 40 basis points to 6%, and operating income for the quarter increased 9.9% to $94.7 million.
The company held $849.5 million in cash and equivalents as of Dec. 31, 2022. Inventory was $1.2 billion as of the Decemer end.
The company’s adjusted EPS was $0.16, beating the consensus of $0.09.
Under Armour repurchased 35 million shares for $425 million under its two-year, $500 million program approved in February 2022.
Outlook: Under Armour's FY23 revenue growth outlook is unchanged from the previous expectation of a low single-digit percentage rate increase on a reported basis, up at a mid-single-digit percentage rate on a currency-neutral basis.
The company raised its FY23 adjusted EPS outlook to $0.52 - $0.56 from the prior view of $0.44 - $0.48 versus the estimate of $0.46.
Price Action: UA shares are trading lower by 6.26% at $10.12 on the last check Wednesday.